strategic direction - telenor · pdf filean increasingly global and digital world ......
TRANSCRIPT
CMD 2017
TELENOR IS COMING FROM A STRONG POSITION
2
• A diversified portfolio with strong market
positions in Europe and Asia
• Strong operations based on quality
networks and mass-market distribution
capabilities
• Majority ownership enabling strong
governance and global scale benefits
• Growth above peers, with solid profitability
in most markets
Scandinavia
Central &
Eastern Europe
Emerging Asia Mature Asia
CUSTOMERS
214 million mobile
subscribers
MARKET POSITION
#1 or #2 in 12 of 13
markets
CMD 2017
WE HAVE DELIVERED GROWING REVENUES AND EBITDA,
SUPPORTING A COMPETITIVE DIVIDEND PAYOUT
3
Revenues (NOK bn)
102 104 111
128 131
2012 2013 2014 2015 2016
EBITDA (NOK bn)
33 36
38
44 46
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2012 2013 2014 2015 2016
Dividend payout (NOK bn)
9.3
10.6 11.0 11.3 11.7
2012 2013 2014 2015 2016
CMD 2017
KEY OPERATIONAL TRENDS IN 2016
Scandinavia
• Migration to new mobile tariffs with
included EU roaming
• Fibre step-up in Norway and Sweden
• Continued intense competition in
Denmark
4
Emerging Asia
• Solid revenue growth, fueled by
increasing data usage
• Substantial network rollout
• Myanmar turning cash flow positive
Central and Eastern Europe
• Focus on value customers,
building on 4G network positions
• Competitors going FMC
• Healthy cash flow margins
Mature Asia
• Double-digit revenue growth
in postpaid segment
• Intense prepaid competition
• Focus on pre-to-post migration
CMD 2017
AN INCREASINGLY GLOBAL AND DIGITAL WORLD
REPRESENTS NEW OPPORTUNITIES
5
• Global operating models for products,
network and IT
• Digital customer interactions
• Improved customer insight through
multiple digital touchpoints
• Software defined networks and
cloud-based IT platforms
• Growth opportunities in digital areas
adjacent to core telecom business
MORE SIMILAR THAN DIFFERENT
DIGITAL BEHAVIOR CONNECTED WORLD
CMD 2017
STRATEGIC DIRECTION TOWARDS 2020
Strategic direction
• Capture growth opportunities
• Step up efficiency measures through
digitizing core and leveraging scale
• Ensure a responsible business conduct
Value creation for shareholders
• Focus on cash flow generation
• Prioritization to secure healthy returns
• Year-on-year growth in dividend
6
CMD 2017
POTENTIAL FOR CONTINUED MOBILE REVENUE GROWTH
9
Increasing real mobile penetration Increasing data usage More affordable smartphones
230
150
60 40 33
7%
17%
22%
25%
2012 2013 2014 2015 2016
Bangladesh: Smartphone price (USD)
37%
51%
44%
52%
2012 2016
Bangladesh
Pakistan
228 218
244 257
280
61 156
319
503
801
2012 2013 2014 2015 2016
Norway: Domestic ARPU (NOK)Norway: Median usage (MB/month)Bangladesh: Smartphone penetration (%)
CMD 2017
ENSURE RELEVANT CUSTOMER OFFERINGS THROUGH
A COMBINATION OF OWN AND PARTNER PRODUCTS
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Telenor products within
3 core categories
TELENOR-
OWNED
PRODUCTS
THIRD PARTY
PRODUCTS
CONNECTIVITY
Preferred partner for
third parties’ digital
products, provided
through open APIs
1
Main integration layer
between business
units and owned and
partner products
TELENOR GLOBAL BACKEND
(ConnectID, Connect Payment, Direct
Operator Billing, Offer API)
COMMUNICATION 2
STORAGE 3
STRENGTHEN FIBRE POSITIONS IN NORWAY AND SWEDEN
Fibre footprint (m homes) and market share (%)
0.3
2.0
0.8
2.8
19%
26%
• Rapid growth in fibre in both Norway and
Sweden towards 2020
• Stepping-up fibre rollout to strengthen
market positions
• Solid fibre business cases in both markets,
with 5-6 years payback in both markets
• Exploring FMC opportunities
2016 2020 2020 2016
Telenor Norway Telenor Sweden
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CMD 2017
EXPLORE EARLY POSITIONS ON FIBRE IN EMERGING ASIA,
UTILIZING EXISTING MOBILE INFRASTRUCTURE
Strong rationale to take early positions:
• Low and fragmented fixed line penetration
• Growing urban middle class
• Leverage on fibre access to buildings for
roof-top base stations
Fibre pilots launched in Myanmar:
• Ambition to roll out in 3 major cities in 2017
and 8 cities by 2020
• Estimated total market size of around USD 250
million in 2020
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CMD 2017
SELECTED ADJACENT DIGITAL AREAS TO DRIVE GROWTH
AND SUPPORT CORE TELCO BUSINESS
13
• Stand-alone growth area with
churn-prevention effect on core
business
• #1 position in Pakistan through
Easypaisa and Tameer Bank
• Launched services in Myanmar in
2016, aiming for #1 position
• Potential digital sales channel for
mobile services
• Positions in Asia and LatAm
through JVs with Schibsted,
Naspers and SPH
• Aiming to strengthen position in
South East Asia
• Closely linked to core enterprise
segment in Scandinavia
• Building on strong IoT and
enterprise position in Norway
• Telenor Connexion well
positioned within fleet
management and tracking
Relevante bilder til illustrasjon? Relevante bilder til illustrasjon?
Mobile financial services Online classifieds Internet of Things
CMD 2017
STRENGTHEN OUR EFFICIENCY AGENDA,
AIMING FOR NET OPEX REDUCTIONS TOWARDS 2020
15
• Move customer care and sales towards digital channels
• Realize scale potential within network and IT through a more
global operating model
• Reduce regulatory cost by moving from concession to licence
regime in Thailand
• Continuous improvement through prioritization, simplification
and right-sizing
Opex development (NOK bn)
40 40 42
49 51
2012 2013 2014 2015 2016
Savings potential within all key opex areas
CMD 2017
CUSTOMER CARE AND SALES WILL MOVE TO DIGITAL
CHANNELS, PROVIDING SIGNIFICANT COST EFFICIENCIES
• Shift over 300 million calls to digital self-care,
aiming for 80% reduction in calls by 2020
• Establish the MyTelenor app as the primary digital
care channel in all business units
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Digital customer care Digital sales and marketing
• Reduce commissions by moving transactions
from physical point-of-sales to digital channels
• Increase efficiency in remaining physical
distribution through digitizing interactions with
retailers and customers
CMD 2017
ADVANCED ANALYTICS WILL BE KEY CAPABILITY TO REACH
GROWTH AND EFFICIENCY AMBITIONS
17
Ow
n &
op
er.
2n
d/3
rd p
art
y
Own digital verticals
Own services
Integrated partner services
Open ad eco-system
Aggregated inventory
Audience creation
Decision modeling Attribution
Media execution
Identity
Aggregated data
CMD 2017
REALIZE SCALE POTENTIAL
WITHIN NETWORK AND IT
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IT
• Launch global/regional IT operating model in Asia &
Europe
• Standardize and virtualize IT applications
• Establish API gateway in all business units
Network
• Launch global / regional network operating model
• Software defined networks
• Improved asset efficiency through better asset
utilization and adoption of new technologies
• Capex efficiency through standardized,
shared/common solutions
CMD 2017
TAKING STEPS TOWARDS A MORE
SIMPLIFIED PORTFOLIO
• VimpelCom exit commenced in 2016
• No further capital to be allocated to India
• Review of less strategic assets
• Selective and disciplined M&A, focused on
strengthening core positions and capabilities
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CMD 2017
STRATEGY AND EXECUTION:
FOCUS ON DIGITIZING CORE BUSINESS
DIGITIZING
THE CORE
PRODUCTS
SUPPORTING
OUR TELCO
OFFERING
NEW DIGITAL
BUSINESSES
21
CMD 2017
A FOCUSED STRATEGIC APPROACH
IN OUR GEOGRAPHIC CLUSTERS
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Strong integrated fixed &
mobile premium positions
in Norway and Sweden
Strong mobile positions in
Emerging Asia, with
opportunistic approach to
selective fixed positions
Lean mobile-only positions
in Central & Eastern Europe
Rich digital mobile-only
positions in Mature Asia,
targeting digital generation
segment
CMD 2017
STEPS TAKEN TO SECURE EXECUTION OF STRATEGY
• New organizational model to drive
transformation and focus resources
• Global operating model to leverage
scale
• Strengthened performance
management
• In-house capabilities within advanced
analytics
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Finance
People
Corporate Affairs
Group CEO
Emerging Asia Mature Asia Central & Eastern
Europe Scandinavia
Service and Operations
Products and Customer
Interaction
Digital Businesses
Transformation
CMD 2017
• Continued revenue growth and increased cost
efficiency, driven by digitizing core business
• Focus on simplification and prioritization of resources
• Building a solid foundation for continued value
creation for our shareholders
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VALUE CREATION TOWARDS 2020